1 ORDINANCE NO. _______
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM AMENDING SPECIFIED SECTIONS OF
CHAPTER 2.14 OF THE ANAHEIM MUNICIPAL CODE
RELATING TO THE ANAHEIM TOURISM
IMPROVEMENT DISTRICT
WHEREAS, the City Council (the "City Council") of the City of Anaheim (the "City") established the Anaheim Tourism Improvement District (the "ATID") through the adoption of a Resolution of Formation (Resolution No. 2010-151) on September 14, 2010. (“Resolution of Formation”). The ATID was established in accordance with City Ordinance No. 6174 (the "Enabling Ordinance"), which authorizes the formation of tourism improvement districts and the assessment on businesses within such districts to aid in the promotion of tourism and physical and other improvements and activities within local tourism improvement districts that specifically benefit certain businesses located within such districts. The Enabling Ordinance is codified in Anaheim Municipal Code Chapter 2.14; and
WHEREAS, as part of the formation of the ATID, the City Council adopted the Anaheim Tourism Improvement District of 2010 Management Plan dated September 2, 2010 (“2010 Management Plan”). The 2010 Management Plan contains the information required in Anaheim Municipal Code section 2.14.050; and WHEREAS, the City Council desires to make certain modifications to Enabling Ordinance, the Resolution of Formation and the 2010 Management Plan to further promote the ATID as a premier tourism and convention district within the boundaries of the City and, specifically, to further aid in the promotion of local tourism and convention- related programs and activities for hotels located in the proposed ATID area; and WHEREAS, the City Council, among other modifications, desires to add housing programs for ATID assessed businesses and their employees with funding from ATID assessments to address the significant need for workforce housing. The City proposes to use a portion of the existing ATID assessment to fund ATID Area Workforce Housing Programs through a segregated fund established in the Anaheim Local Housing Trust Fund; and
WHEREAS, on September 23, 2025, the City Council adopted a Resolution of Intent (Resolution No. 2025-088) (“Resolution of Intent”) declaring its intent to adopt proposed modifications to the Enabling Ordinance, 2010 Management Plan and Resolution of Formation (“ATID Modifications”) and setting a time and place for a proposed public meeting and hearing on the ATID Modifications. The ATID Modifications were specifically described in the Resolution of Intent; and 2 WHEREAS, the ATID Modifications in the Resolution of Intent are generally described below.
a. ATID Area Workforce Housing related actions
• Add Housing activities, improvements, services and programs that can be funded by ATID Assessments, including First-Time Homeowners Program, Housing Stability Program and Build More Homes Initiatives. See changes in Anaheim Municipal Code sections 2.14.020.010 and 2.14.020.080 and Management Plan Section 014.
• Change allocation of ATID Assessment Revenue to allocate nine percent (9%) to new segregated fund entitled ATID Area Worker Housing Program in Anaheim Local Housing Trust Fund to support ATID area workforce housing programs. • Create Housing Committee and membership rules. Housing Committee shall oversee the use of the ATID Area Workforce Housing Program funds and have the full authority to develop and approve an annual budget for ATID Area Workforce Housing Program funds.
b. Expand boundaries of ATID to add Viv Hotel and potential new hotels on Anaheim Boulevard from Viv Hotel to just north of Ball Road and easterly to the nearby railroad tracks and properties located on the east side of South Anaheim Way (1628 through 1730 South Anaheim Way), comprising approximately 10 acres, and bordered by the western boundary line of the Platinum Triangle to the east and a Southern California Edison easement to the north. A copy of the Amended District Boundary Map showing the current and added ATID boundaries was attached to the Resolution of Intent. A corresponding update to the street description of boundaries of the ATID and list of Assessed Facilities that will be located in the updated ATID boundaries as of September 2025 was attached to the Resolution of Intent.
c. Remove existing exclusion of “Vacation Ownership Resorts” as defined in Anaheim Municipal Code from ATID Assessment for units constructed or converted after adoption of the Amended and Restated ATID Management Plan.
Vacation Ownership Resorts constructed or converted and commencing operation after adoption of Amended and Restated Anaheim Tourism Improvement District of 2010 Management Plan will be subject to ATID Assessment subject to conditions set forth in definition of “Assessed Facilities” in Anaheim Municipal Code Section 2.14.020.030.
d. Revising allocation of ATID Assessment Funds to Marketing Component Funds.
Proposed allocation is seventy-five percent (75%) of Remaining ATID Assessment Revenue (after allocation of one percent (1%) to City Administration of ATID and nine percent (9%) to ATID Area Workforce Housing Programs) to Marketing Component Funds.
3 e. Revising allocation of ATID Assessment Funds to Transportation Component Funds Proposed allocation is twenty-five percent (25%) of Remaining ATID Assessment Revenue (after allocation of one percent (1%) to City Administration of ATID and nine percent (9%) to ATID Area Workforce Housing Programs) to Transportation Component Funds.
f. Additions and clarifications to Marketing and Promotion Activities, Improvements, Services and Programs which may be funded by ATID Assessment, including, but not limited to, underwriting special events, planning and development-related tools and studies, and placemaking and beautification physical improvements.
g. Additions and clarifications to Transportation Activities, Improvements, Services and Programs which may be funded by ATID Assessment, including, but not limited to, the “east/west connector”, emerging mobility solutions (such as micro- transit systems), and transportation to and from Assessed Facilities within the ATID Boundary to visitor-serving destinations.
h. Amending Cost Recovery provisions to allow City to be reimbursed for costs incurred in the investigation, formation and implementation of any ATID amendments, which would include the ATID Modifications. The City’s costs relating to the ATID Modifications will be reimbursed, from the proceeds of FY 26-27 assessments generated by the ATID above and beyond, and in addition to, the one percent (1%) annual City administrative costs amount. i. Remove language restricting use of assessment revenues for improvements and activities outside ATID boundaries in Anaheim Municipal Code and Resolution of Formation.
j. Generally, updating outdated information in 2010 Management Plan based on events occurring since 2010 adoption; and
WHEREAS, in accordance with law, the City Clerk provided notice of the adoption of the Resolution of Intent, and the public meeting to be held on October 28, 2025 and the public hearing to be held on November 18, 2025 on the ATID Modifications.
The notice included mailing a copy of the Resolution of Intent and a Protest form to all businesses which would be subject to the ATID assessment (“Assessed Facilities”); and WHEREAS, in accordance with law, on October 28, 2025, the City Council held a public meeting to allow and receive public testimony regarding the ATID Modifications at the City Council Chamber during its regularly scheduled meeting (the "Public Meeting"); and
4 WHEREAS, in accordance with law, on November 18, 2025, the City Council held a public hearing (the "Public Hearing") to allow and receive public comment and any oral or written protests by Assessed Facilities relating to the proposed adoption of the ATID Modifications (“Protests”); and
WHEREAS, at the Public Hearing, the City Council considered all written and oral Protests and testimony concerning the proposed ATID Modifications; and WHEREAS, in accordance with law, at the conclusion of the Public Hearing, the City Clerk tabulated all Protests received and determined that Protests had not been received from Assessed Facilities that would be included in the proposed ATID boundaries and that are projected to pay fifty percent (50%) or more of the ATID Assessments levied.
Therefore, the City Council determined that there was no majority protest to the ATID Modifications within the meaning of Section 2.14.070.040 of the Anaheim Municipal Code; and
WHEREAS, at the conclusion of the Public Hearing, the City Council considered the adoption of this Ordinance setting forth amendments to the Enabling Ordinance related to the ATID Modifications and a Resolution adopting amendments to the 2010 Management Plan and Resolution of Formation relating to the ATID Modifications (“ATID Amendment Resolution”); and
WHEREAS, ATID Modifications are limited to those described in this Ordinance and the ATID Amendment Resolution. Portions of the 2010 Management Plan, Resolution of Formation and the Enabling Ordinance not specifically modified remain in place and are not proposed to be amended, including, but not limited to the following: the name of the ATID, the amount (two percent (2%), timing and method of collecting the assessment, and the duration of the district; and
WHEREAS, evidence showing the modified activities, improvements, services and programs under this Ordinance, including housing, will provide specific benefit to the assessed businesses within the ATID boundaries is provided in the record and information presented to the City Council. The City Council finds and determines that the public convenience and necessity require the adoption of this Ordinance and the ATID Amendment Resolution, and that all Assessed Facilities within the ATID will be specifically benefitted by the expenditure of the funds raised by the ATID Assessments proposed to be levied to cover the costs of activities, improvements, services and programs set forth in this Ordinance and the ATID Amendment Resolution. Any future Assessed Facilities shall be automatically included in the ATID as they will be specifically benefitted by the expenditure of funds raised by the ATID Assessments levied.
5 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
ANAHEIM HEREBY ORDAINS AS FOLLOWS:
SECTION 1.
That Section 2.14.020 DEFINITIONS of the Anaheim Municipal Code is hereby amended to read as follows:
2.14.020 DEFINITIONS.
.010 “Activities” means, but is not limited to, all of the following:
.011 Promotion of public events which benefit Assessed Facilities in the district. .012 Furnishing and/or underwriting of music, special events or entertainment in the City that benefit the Anaheim Convention Center or the district.
.013 The international and national promotion of tourism and use of the Anaheim Convention Center within the district including establishment of satellite offices and facilities in other markets for the promotion of the City as a desirable destination location. .014 Marketing and economic development, including retail and tourism-related businesses retention and recruitment.
.015 Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. .016 Planning and development-related tools and studies that facilitate tourism within the district. .017 Financial support for first-time homeownership to qualified Assessed Facilities employees. .018 Emergency financial assistance to prevent loss of housing to low and very-low income Assessed Facilities employees.
.019 Other activities, services and programs provided for the purpose of conferring specific benefit upon Assessed Facilities located in the district. .020 “Advisory Board” means the advisory board designated by the City Council pursuant to Section 2.14.150.
.030 “Assessed Facilities” means (1) all current and future visitor accommodation facilities, hotels, motels located within the ATID boundaries engaged in the renting of rooms for a period of less than thirty (30) days, and (2) all Vacation Ownership Resorts, as such term is defined in AMC Sections 18.114.030.150.1501 and 18.116.030.100 that are: (a) constructed as or converted to Vacation Ownership Resorts and commence operation after adoption of the First Amended and Restated Management Plan on ____, 2025, (b) are located within the ATID boundaries, and (c) include time share facilities or interests that can be used for occupancy through either the payment in dollars or points or similar credits as part of a vacation ownership resort program of rooms for a 6 period of less than thirty (30) days.
.031 “Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and promoting activities which will benefit the businesses located and operating within a tourism improvement district.
.040 “Business” means all types of businesses that benefit from the establishment of a tourism improvement district.
.050 “City” means the City of Anaheim.
.060 “City Council” means the City Council of the City of Anaheim. .070 “Contracting Entity” means the organization with which the City contracts to handle the day-to-day operations of the TID and implementation of the management plan. .080 “Improvement(s)” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five (5) years or more including, but not limited to, the following:
.081 Parking facilities.
.082 Transportation systems that deliver customers and patrons to the TID hotels, the Anaheim Resort Area, the Platinum Triangle, and the Anaheim Convention Center. .083 Benches, booths, kiosks, display cases, pedestrian shelters, public art and signs. .084 Trash receptacles and public restrooms.
.085 Lighting, heating and cooling facilities.
.086 Decorations.
.087 Parks and plazas.
.088 Fountains.
.089 Planting areas and landscaping (including parkways and median strips).
.090 Closing, opening, widening, or narrowing of existing streets. .091 Facilities or equipment, or both, to enhance security of persons and property within the area.
.092 Ramps, sidewalks, bridges, plazas, and pedestrian malls. .093 Rehabilitation or removal of existing structures. 7 .094 Convention center facilities.
.095 Fund the development and rehabilitation of workforce housing for qualified Assessed Facilities employees.
.090 “Property” means real property in and around TID businesses located within proposed TID boundaries.
.100 “Tourism improvement district,” or “district,” or “TID” means an area designated as provided in this chapter. (Ord. 6174 § 1 (part); July 27, 2010.) SECTION 2.
That Section 2.14.090.018 of the Anaheim Municipal Code is hereby amended to read as follows:
SECTION 2.14.090.018 A statement that the improvements and activities to be provided in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used for any purpose other than the purposes specified in the resolution of intention, as modified by the City Council at the hearing concerning establishment of the district.
SECTION 3.
That Section 2.14.130 COST RECOVERY of the Anaheim Municipal Code is hereby amended to read as follows:
SECTION 2.14.130 COST RECOVERY
.010 The City Council may authorize a district formed pursuant to this ordinance to recover though the assessments, the cost incurred in formation of and amendments to the district, including:
.011 The cost of preparation of the management plan or amendments to Plan. .012 The cost of printing, advertising, and the giving of published, posted, or mailed notices. .013 Compensation of any attorneys or other consultants employed to render services related to the formation and amendments to any district including proceedings under this ordinance. .014 Any other costs associated with the formation of and amendments to the district. .020 If a district is authorized to recover these costs, any management plan prepared pursuant to subsection 2.14.050 shall specify the formation or amendment costs eligible for recovery through assessments, the schedule for recovery of those costs, and the basis for determining the amount of the additional assessment for recovery of costs. (Ord. 6174 § 1 (part); July 27, 2010.) 8 SECTION 4. That Section 2.14.170.012 of the Anaheim Municipal Code is hereby amended to read as follows:
SECTION 2.14.170.012 During the operation of the district, there shall be a 30-day period each year in which assessed facilities may request disestablishment of the district. The first such period shall begin five (5) years after the date of establishment of the district or such other time as set forth in the management plan and shall continue for thirty (30) days. The next such 30-day period shall begin six (6) years after the date of the establishment of the district or such other time as set forth in the management plan. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners of businesses in the TID who pay 50 percent (50%) or more of the assessments levied, the City Council shall pass a resolution of intention to disestablish the district. The City Council shall notice a hearing on disestablishment.
SECTION 5. SEVERABILITY The City Council of the City of Anaheim hereby declares that should any section, paragraph, sentence or word of this ordinance of the Code, hereby adopted, be declared for any reason to be invalid, it is the intent of the Council that it would have passed all other portions of this ordinance independent of the elimination herefrom of any such portion as may be declared invalid.
THE FOREGOING ORDINANCE was introduced at a regular meeting of the City Council of the City of Anaheim held on the 18th day of November, 2025, and thereafter passed and adopted at a regular meeting of said City Council held on the ___ day of _________ , 2025, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ANAHEIM
BY:____________________________
MAYOR OF THE CITY OF ANAHEIM
ATTEST
_________________________________
CITY CLERK OF THE CITY OF ANAHEIM